Statement I: Positive liberty emphasizes the concept of 'freedom to' and focuses on improving the conditions for individual development. Statement II: Access to education and opportunities, participation in decision-making, and freedom from poverty are essential for the development of positive liberty. In light of the above statements, choose the correct answer from the options given below:

Consider the following statements regarding F.A. Hayek's views on liberty: (i) He defines liberty as the absence of coercion or arbitrary restraints. (ii) He considers law and liberty as consistent and mutually supportive. (iii) He is critical of the welfare state, arguing it undermines the sense of personal responsibility crucial to liberty. Choose the correct option given below:

How is freedom defined in the republican tradition of liberty?